Nigerian states have recorded nearly double their total revenues compared to the 2023 fiscal year, driven largely by increased allocations from the Federation Accounts Allocation Committee (FAAC) and the removal of fuel subsidy, according to the BudgIT Foundation.
Speaking on Channels Television’s Politics Today on Wednesday, Vahyala Kwaga, Deputy Country Director of BudgIT, said the development marks a major fiscal shift for many states, with improvements also seen in Internally Generated Revenue (IGR).
“The total revenue of all the states almost doubled compared to the 2023 fiscal year. A lot of this increase came from FAAC allocations and the removal of subsidy. States are earning far more, and their IGR has improved across the board,” Kwaga said.
He explained that BudgIT’s latest report evaluates states’ fiscal performance over the past decade, comparing year-on-year IGR growth and overall revenue improvements between 2023 and 2024. According to him, several states have made notable progress in boosting their internal revenue capacity.
The new BudgIT report also highlights the gradual fiscal independence of some states, even as many still rely heavily on monthly FAAC disbursements to sustain operations.
